One of your best options for getting money to help pay for your college education is through the U.S. Department of Education federal student aid program.

If you want to apply for federal student aid, either federal student grants or federal student loans, one of the first things you have to do is submit your Free Application for Federal Student Aid, also known as FAFSA.

About 72% of the families having students attending college complete the FAFSA application. Filling out and submitting your FAFSA application is easy. We outline the process for you.

FAFSA Overview:

You must FIRST complete and submit a Free Application for Federal Student Aid (FAFSA) online or through the mail as soon as possible (after January 1st) in order to apply for any federal student aid, including:

- Federal Student Grants

- Federal Student Loans

- Federal Work Study

Before You Start The FAFSA Process:

1. Collect all the documents and information that you will need. This includes the following:

- Your Social Security Number.

- Your driver's license.

- Your W-2 forms and other records of money you have earned.

- You and your spouse's Federal Income Tax Return.

- Your parent's Federal Income Tax Return (if you are a dependent student).

- Any untaxed income records such as child support, workers comp, veterans benefits.

- Your current bank statements.

- Your current business and investment records.

- If you are not a U.S. Citizen, your alien registration or permanent resident card.

2. Locate and print a FAFSA Worksheet. The FAFSA on the Web site provides you a FAFSA worksheet in PDF format that allows you to read and fill in the FAFSA application before you submit one online. To make it easy for you, the questions are in the same order as they appear online. The FAFSA worksheets can be downloaded for two different years using the links below.

2011-2012 FAFSA worksheet PDF

2012-2013 FAFSA worksheet PDF

3. Know how you are going to sign your FAFSA. You can mail in a signature page or you can sign electronically with a Personal Identification Number (PIN).

4. If you want to speed up the process and work with the FAFSA online, then you will need to apply for your PIN.

What is a PIN?

For the purposes of Federal Student Aid, a PIN is a 4-digit number that is used in combination with your Social Security Number, name, and your date of birth to identify you as someone that has the right to access your own personal information on Federal Student Aid Web sites, like FAFSA on the Web.

Parents if you want to electronically sign a FAFSA for your student, you will need your own PIN. If you have more than one child that is attending college, you can use your same PIN to sign their applications.

You need to keep your PIN secure and not disclose it to anyone because:

- It can be used to electronically sign Federal Student Aid documents

- Access your personal records

- Make binding legal obligations.

If your PIN is lost or stolen, you need to:

- Contact Federal Student Aid Customer Service at 1-800-433-3243.

- Request a new PIN by selecting Change My PIN from the PIN site

- Disable your PIN so that no one else can use it by selecting Disable My PIN from the PIN site.

5. Determine your eligibility for federal student aid if you have ever been convicted of possessing or selling illegal drugs by printing and filling out the student aid eligibility worksheet.

6. Make sure you know the important FAFSA due dates and apply as early as you can beginning January 1st of each year.

FAFSA Deadlines:

Submit 2011-2012 FAFSA on the Web Applications by midnight Central Daylight time, June 30, 2012.

State deadlines are normally much earlier than Federal deadlines. You will need to check your individual state and college for those dates.

FAFSA Application: The FAFSA has several steps that ask for information about you, your school plans and your finances.  Applying online with FAFSA On The Web is quicker and easier than submitting a paper application.

FAFSA Application Process:

1. Complete and sign the FAFSA.

2. Within 5 days they will process your FAFSA and send you a Student Aid Report (SAR).

3. Review the SAR to check for errors. The SAR will summarize the data you report on your FAFSA.

4. Keep a copy of your SAR.

5. Take a look at your Expected Family Contribution (EFC). If your FAFSA information is complete, an EFC will appear in the upper right corner of your SAR. Your EFC is based on the financial information you provide on the FAFSA.

6. Check with your school because your school will use your EFC to award your financial aid.

FAFSA Status:

You can check the status of your FAFSA application whenever you want. You should check it one week after submission if you used a PIN to sign your application. If you printed, signed and mailed the application, you should check your FAFSA status 2-3 weeks after submission.

Federal Student Aid Programs: The programs covered by the FAFSA include the following:

Federal Student Grants - Grants, unlike loans, do not have to be repaid. The newer grants are the TEACH, ACG, and National SMART grants.

The most well known grant with the least amount of conditions is the Federal Pell Grant. The FSEOG and other Institutional Grants have specific conditions that must be meet in order to receive the grant.

Federal Campus-based Programs - These programs are administered by the financial aid office at each school. These programs include the FSEOG, the Federal Work-Study and the Federal Perkins Loan.

Federal Student Loans - The Direct Loan Programs for students are known as the Stafford Loans. The PLUS Loans are the Direct Loan Programs for parents of undergraduates and GradPLUS Loans for graduate and professional students.

The Direct Loan Programs require that you will be paid through your school in at least two installments. Federal student loans do have to be repaid and repayment terms depend on the loan.

If you have several federal student loans you might want to consider consolidating them into one Direct student consolidation loan. There are several advantages to student loan consolidation.

Remember, the FAFSA is a completely FREE application. If you need help filling it out, there are many free tools available to help you. You don’t need to pay anyone to help you fill out your FAFSA.

If you don't qualify for Federal Student Aid, there are many private student aid programs that are available. SimpleTuition - the smart way to choose student loans.

These include 529 State College Savings Plans, scholarships, private loans for college, non federal student loans, and private school loan consolidation programs. 

Be sure to research all your options and make smart financial decisions when it comes to paying for your college education.

One of the first things you should be aware of regarding your financial situation is your credit history. If you have credit cards, pay rent, utilities or make car payments, you need to review your free credit report and know your credit score.

Every American is entitled to a free credit report every year. This is the same credit report that credit agencies use to calculate your credit score. Having a good credit score can help you get a loan and get you lower interest rates. Do you know your credit score?

If you are already having a problem with debt there are several options that may be of help. If you have several credit cards that are carrying balances, you might want to consider credit card consolidation loans. By consolidating your credit card payments into a single loan, you may be able to get a lower interest rate.

 Another option for managing your debt is to consolidate your debt and bills. Again, this reduces the number of different bills you have to make payments on into one easy payment. There are a lot of companies that offer you solutions for managing your debt. Make sure that you take the time to research your debt reduction options before you select a program.

Remember, going to college is an important decision and managing your finances is an integral part of making good decisions.